101157 . 185 Home SFR Detroit, MI

08-22-2022
09-21-2022

101157 . 185 Home SFR Detroit, MI, Detroit, MI 48219

Portfolio consists of 179 single-family detached homes and 3 duplexes containing 6 units
Average home size is 1,072 square feet
Mix of two, three and four bedroom homes
Homes built between 1925 and 1960 with an average vintage of 1933
Portfolio is professionally managed by a local property management firm
97% leased to fully vetted tenants
There are 69 Section 8 tenants in the portfolio
Average monthly rental rate of $872
Rents are 20% below current market rents
Year 1 Stabilized cap rate of 8.77%
Year 1 Stabilized yield of 13.82%
Average asking price of $93,685 per home
Asking price is 37% below the current median home price in Detroit
All SVN® Offices Independently Owned & Operated
Local Broker License Information: www.SFRhub.com/realstatelicensing

Property Description

Visit www.SFRhub.com and search for portfolio 101157 for more information. 

Contact:
TOM JOHNSTON
Director of Brokerage Services
SVN | SFRhub Advisors
T: 602.825.1780
C: 602.403.3695
tom.johnston@svn.com
License #: BR507919000

BOR:
SVN | Stewart Commercial Group, LLC
Dan Stewart
Managing Director

SVN | SFRhub Advisors is pleased to present to qualified investors this 185-home SFR portfolio scattered about Detroit, Michigan. The portfolio includes 179 single-family detached homes and 3 duplexes containing 6 units. The seller has been purchasing the homes since 2008 and has performed significant renovations in the absence of tenants or during turnovers while providing cosmetic improvements on homes that have remained occupied. As improvements have been made, the seller has deployed similar color schemes, flooring, window coverings, and fixtures in each of the homes. The portfolio is managed by a local professional property management company, which has maintained the homes in quality condition. The portfolio contains 69 Section 8 homes, providing an investor with guaranteed income through government subsidies. All of the homes are certified rentals through the local housing authority. The majority of the homes are clustered along the Eight Mile Road between I-75 and Telegraph Road. There are several homes located along Eight Mile Road east of I-75 near Connor Creek, Eastpointe, and Harper Woods. These homes were constructed between 1925 and 1960 with an average vintage of 1933. The properties include 13 – two bedroom, 165- three bedroom, and 7 – 4 bedroom homes. The dwellings range in size from 688 – 1,600 square feet, with an average size of 1,072 square feet. The portfolio is currently 97% leased to fully vetted tenants. The seller as actively leasing the vacant homes. There are no delinquencies within the portfolio. The average rent is $872 per month and are 20% below current market rents, providing an investor with increased cash flow as leases expire. The seller has been successful in raising the rents to the market rate over the first half of 2022. According to John Burns Real Estate Consulting, rents in Detroit have increased 8.2% YoY and are on pace to grow by 3.2% through 2022. Home values are up 12.7% YoY with anticipated growth of 6.1% through 2022. Median home prices in Detroit are $148,000, more than 70% higher than the average price of $93,685 in this portfolio. This portfolio has an attractive Year 1 cap rate of 8.77% with a gross yield of 13.82%.

Key Property Information

Listing Status
Available
Listing Type
Highest & best offer
Multifamily type
Single Family Rental Portfolio
Price
$ 17,331,699
No. of Units
185
Cap Rate
6.29%
Average Occupancy
99.99%
Year Built
1944
Building Size
198,331 Sq ft
Lot Size
960,498.00 sq ft
Opportunity Zone
No
Buy Side Fee
50%
Price per unit
$ 93,685
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